Forex is such a tough market especially for those who prioritize emotion over business rules. The reason is traders not only have to deal with regular market changes, strategies, financial news and many more but also with themselves as well. As a trader, most of the time your emotion become your greatest enemy that might drive you to take a wrong move that is enough to vanquish your trading capital.
For example- after having some consequent losses, you might want to cover up and want to finish the day with some profit. This fear and stress stimulate you to open up trade with high-leverage. Then again if market retrace, it can end up blowing your account.
If you have ever got any chance of interviewing successful traders, you might able to know how they have blown their account at the beginning of their Forex trading career. We bet- you’ll find most of the stories were about losing emotional control. That is the reason most professional traders don’t take a rush decision that drives by emotion.
So what are the things you can do to control your emotion while trading and to be in the zone? Follow these bellow well-organized tricks to manage your inner mind to become a successful trader.
Take a break after each trade
A trader must need to let go his/her all worry, stress, and emotion before placing any order. As day traders are more vigilant towards trapping in the sea of emotion, take walk after every trade, even if you took a break a few minutes ago. Don’t let your emotion control your trading screen. This simple routine help to clear your mind and save you from drag you to take a trade with stress.
Never expect quick profit
Greed– this is an easy trap to fall. This is what many novice traders do. To make quick money the traders place an order with huge volume and lot. While the size of the lot directly related to the risk of trading account, if the trade doesn’t go as expected, it can end up losing the entire capital. So always consider the risk associated with every trade. Carefully measure all options and then place the trade. After all, prevention is better than cure.
Find a suitable trading session
Choosing the least volatile hours to trade can help to control your emotion. Trying to trade when the market experiences big moves and creates huge spikes is risky and can lead frustration. Anger follows and your emotional barrier can pretty much be broken. The best way to take a break, listen to your favorite song and read books when the market is experiencing a volatile move.
Few losing is not the end of the game
Everyone makes mistakes and every trade can end up with the loss. Even most of the successful traders fail to make a profit of at least 50% of all their orders. So when you make a wrong move and the market react exactly the opposite you expected, this is not the end of the game. There are chances that you still can make a profit and recover your loss. Traders who make money constantly have no holy-grail formula to win every single trade. They win because they look long-term return on capital investment. What’s important is that you must develop a positive return on equity strategy over time.
Most of all, learning to control your emotion require time and lots of patience. Take these tricks seriously. These helpful tips will help you become a persistent trader to continue good emotional habits and responses.